Here’s something unexpected. Chipmaker Broadcom is looking to buy Qualcomm, and the company has made an unsolicited bid of a whopping $130 billion towards that end. If accepted, this will become the biggest takeover ever in the technology sector. According to Hock Tan, president and CEO of Broadcom, the big is “compelling for stockholders and stakeholders in both companies”. Combined, the two companies will have much higher output and be capable of more.
The deal would also put the new entity in third spot, behind Intel and Samsung, amongst the largest chipmakers in the world.
“We would not make this offer if we were not confident that our common global customers would embrace the proposed combination,” Tan said via a statement. "Broadcom's proposal is compelling for stockholders and stakeholders in both companies. Our proposal provides stockholders with a substantial and immediate premium in cash for their shares, as well as the opportunity to participate in the upside potential of the combined company."
According to reports, Broadcom’s deal has a combination of stocks and cash. The company is willing to pay $70 per share to take over Qualcomm, which is a 28 per cent premium over the closing price of Qualcomm’s stock from November 2.
The deal would also put the new entity in third spot, behind Intel and Samsung, amongst the largest chipmakers in the world. Qualcomm’s market capitalisation was seen at $91 billion this past Friday, while Broadcom’s was at $112 million.